1. Current trends in the Russian
mobile market
Marc Sommer
MTS, Director for Products & Innovation
15th April 2012

2. Local app store with local applications is main
success factors in Russia
Shares of players on Russian apps market, mln. Key success factors for MNO
USD in Russia
04/10/12  Leading position in the market
Quickly creation of App store with large
04/10/12 number of applications and largest
04/10/12
04/10/12 MTS revenue breakdown base of App store clients on the market
04/10/12
04/10/12  promotion among subscribers
04/10/12
04/10/12 04/10/12 Branded  promotion among developers
(28%*) apps
04/10/12  Operator billing
04/10/12 strategic
04/10/12 goal  Local content and applications
04/10/12  Sales intelligence of shop
04/10/12
(33%*)
04/10/12  Ability to push apps to the base
04/10/12
 Smart pricing**
04/10/12 04/10/12
(30%*) Large number of free applications,
04/10/12 04/10/12 income due to traffic and advertising
04/10/12
04/10/12
(34%*)
(40%*)  Collaboration with providers of the
04/10/12 04/10/12 most popular services (social
04/10/12
(36%*) 04/10/12* networks, search and LBS services)
 Brand of outsource applications
04/1 04/1 04/1 04/1 «MTS verified app» label for the best
0/12 0/12 0/12 0/12 applications
* Market shares are shown only for Big3 players
Source: AC&M, J'son & Partners Consulting ** Forecast that share from advertising will grow from 5% in 2009 to 25% in 2013; number of free
applications will grow from 79% to 87%
_________________________________
(Please stamp Confidence) *** Carrier billing 2
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

3. Smartphones penetration growth stimulates interest
in applications and growth of consumer traffic
Smartphone penetration in Russia, mln.
Fact Forecast
04/10/12
 Growth of smartphones
penetration will lead to
04/10/12
new opportunities for
Texte
MNOs, e.g. increase of
04/10/12
04/10/12 application usage due to
04/10/12 04/10/12 snowball effect
04/10/12
04/10/12
2010 2011 2012 2013 2014
04/10/12
04/10/12
_________________________________
(Please stamp Confidence) 3
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

4. Average speed of the network evolution and
influence on applications usage
Average speed of the network evolution in Russia
up to 100 Mbit/s
3,14 Mbit/s
256 kbit/s
LTE
128 kbit/s HSDPA
UMTS 2014
40-60 kbit/s
EDGE 2009 Launch of LTE in
2008 2012 in Russia
9,6-14,4 kbit/s GPRS
2005
CSD 2001
Aggressive MTS Internet Traffic forecast, mln.Tb.
1994
04/10/12
04/10/12
04/10/12
04/10/12
04/10/12
2011 2012 2013 2014 2015
_________________________________
(Please stamp Confidence) 4
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

5. Segmentation of customer base allows targeted
marketing of product and services
Status
 Tariff plan
 ARPU
Social- Calls
demographic  Call behavior
 Age  Roaming (countries)
 Gender
Criterions
of
segmentation
Devices
Geografic
 Type
 Macroregion
 Vendor
 Region
 Model
Other services
 Internet
 Content
 etc.
_________________________________
(Please stamp Confidence) 5
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

6. App Store, Opera Mini and customized handsets
are the main channels for MTS branded apps
distribution at 2011
Shop windows and MTS toolbar (new) Shop windows and
channels of sale channels of sale
WEB Apps Portal 2,5 mln Branded Opera Mini
6,7 mln 1,5 mln
Personal cabinet (new)
MTS CRM programs
branded
2,5 mln apps 10,2 mln
Customization App stores (OVI, Apple)
0,8 mln early 2,7 mln
XX mln – Target potential customer base reach by the end of 2011
_________________________________
(Please stamp Confidence) 6
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

7. WEB catalogue of MTS applications creates cross-
sell opportunities
WEB catalogue of MTS applications on MTS site Comments
PDA catalogue of MTS  Promo site MTS with
applications in mobile mobile application as part
internet of site MTS
 Automatic recognizing
the model of subscriber's
phone and recommend
suitable applications
 Promo site presented in
WEB and mobile Internet
 MTS recommendations
works for partner
program applications
? ? ?
_________________________________
(Please stamp Confidence) 7
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

8. MTS Toolbar represents a new communication
channel to subscribers
Comments
 Toolbar is the new canal
to provide operator and
content services to
subscribers
 Deep integration to the
Personal cabinet, self-
care services of MTS,
search and social
networks
 Advertising of partner
services like Omlet,
applications
 Toolbar will be activated
on all type of users on
iPhone and Android
devices
_________________________________
(Please stamp Confidence) 8
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

9. Branded Opera Mini highlights MTS identity and
creates additional touchpoint
Comments
 MTS logo on the splash
screen and 2 toolbar links
to MTS services
 3 speed dial links to MTS
services
 Billing integration
(MSISDN-forwarding)
 Zero/premium rating
support
 Yandex search
 Games and applications
could be promoted on
pulse.mts.ru portal or
toolbar games
_________________________________
(Please stamp Confidence) 9
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

10. CRM programs exist to strengthen customer
relationship and promote services
Comments
 Segmentation is the first
step of promotion for
applications and other
content services based on
devices and data usage
 Text of promotion should be
always clear for
subscribers – this helps for
good response
 A lot of sms do not help to
have good responses, only
segmentation and texts
_________________________________
(Please stamp Confidence) 10
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

11. Branded MTS store was launched in March 2011
Comments
 MTS have the same
AppShop as Vodafone
 Application can be
published on all 9 countries
 AppShop works only on
Android devices
 MTS think not only about
own AppStore, but about
partnership with other
AppStores like the
operators
_________________________________
(Please stamp Confidence) 11
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

12. In 2012 MTS plans to customize 1-1,5 mln. devices
Comments
 MTS plans customize more
than 1,5 mln. devices at
2012
 Android devices are the
biggest part of
customizations plans
 MTS have own updater to
auto embedded right
application on devise
 Partner program
applications can be
presented at updater on
customized devices
_________________________________
(Please stamp Confidence) 12
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

13. Personal cabinet will be integrated in social
networks
Comments
Common API for ANY 3rd
party services, which
provides:
 Authorization, using
WebSSO
 Charging, using Easy
payment and other
mechanics
 Access to extended CRM
information
 Secured customer
confirmation for
transactions
_________________________________
(Please stamp Confidence) 13
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia

14. New applications of MTS 2011: launch of new
interfaces to the current MTS services and launch
of partner program
App GOOD’ok – melody sales App Locator – LBS services of MTS poisk at the App
BR
AN
D
Apps «now meal» and «iReader» - to order food, read books and promotion MTS data services
PA
RT
NE
RS
_________________________________
(Please stamp Confidence) 14
Mobile TeleSystems OJSC, 4, Marksistskaya str., Moscow, Russia